Sunday, June 16, 2024
ISLAMABAD (Urdu Point News Latest - APP. June 16, 2024) The Senate Standing Committee on Finance and Revenue has proposed imposing a 10 percent tax on late filers and withdrawing previous exemptions, while imposing strict penalties on such persons. Underscored, the committee approved the revision of the tax slab, and rejected the proposed capital gains tax on property.
The meeting of the Senate Standing Committee on Finance and Revenue continued on Saturday, in the meeting chaired by Senator Saleem Mandviwala, Senator Sherry Rehman, Mohsin Aziz, Anusha Rehman Ahmed Khan, Shahzeb Durrani, Farooq Hamid Naik, Shibli Faraz and Senator Manzoor Ahmed Kakar attended the meeting. attended Chairman of Federal Board of Revenue and representatives of related departments were also present on this occasion.
The members of the committee were informed about the introduction of a new category called late filers under the Income Tax Ordinance, which refers to persons who regularly do not file returns without any restrictions. The committee suggested imposing a 10 percent tax on such persons and withdrawing the previous concessions, stressing the need to impose stiff penalties on such persons.
Chairman FBR told the committee that the requirement to link NTN numbers with passports for international travel is applicable after due notice under the Income Tax General Order, and there should be no apprehension in this regard. In the meeting, amendments were made to taxation of capital asset transactions and extension of carry-forward period for business losses, especially to benefit entities like Pakistan International Airlines, and introduction of 100 percent tax credits for coal mining projects in Sindh. Amendments related to execution were also reviewed.
The committee expressed unanimous support for providing similar benefits in other provinces. The committee also considered the advertising expenditure related to brand royalty and expressed reservations over the proposed provisions affecting local investors and limits of ownership control. The committee approved the revision of the tax slab, and rejected the proposed capital gains tax on property. The committee approved the withholding tax on phone and internet services for non-filers.
Apart from this, the committee postponed the proposals regarding extension of property tax for ex-FATA and PATA. The meeting addressed concerns regarding 18% GST levies on packaging items and locally processed milk products and specifically supported reduction of taxes on essential items like infant formula milk. He stressed on the fair distribution of taxes between them and opposed putting the burden of taxes on consumers on products like formula milk.
